If you still own and play the original Section 8 game, you will be getting some nice in-game upgrades for your Section 8 Prejudice character. All Section 8 owners before April 20 will get access to the Aegis Armor and the Reactive Plating upgrade. Players who have level 25 character or above will get the Ablative Plating upgrade while the level 50 players get access to the Explosives Amplifier upgrade.

Ah yes i just saw that, seems contradictory to the Online Disclaimer i copied/pasted above.

I didn't think Microsoft even provided the option for a 1 machine limit. I thought it was either a 1 account link, or a 5x5 limit... I think your reply might be correct and the Steam page has it listed incorrectly. Who knows, maybe Steam has it in for Microsoft. Seems as though they are now going directly after them with the Sony version of Portal 2.

Games for Windows Live so i'm assuming you can only activate once only.
I don't think it means install once.

"Machine activation" implies only one machine can be activated. This means you can uninstall and reinstall all you like on that 1 machine. However, change out the hard drive or motherboard and it is now another machine...